PTC India to buy electricity generated from Arun-III

Published On: August 6, 2022 11:40 AM NPT By: Republica  | @RepublicaNepal

KATHMANDU, August 6: The market for the electricity generated by the Arun-III hydropower project being built by India in Nepal has been ensured. The electricity of the hydropower being built by SJVN Arun-III Power Development Company under Sutluj Hydropower Development Corporation (SJVN) will be bought by PTC India.

A memorandum of understanding has been signed between SJVN Arun-III Power Development Company and PTC India. The Company is building the 900 MW Arun-III project in Sankhuwasabha, Province 1, Nepal.

The process to build the Lower Arun Project of 669 MW has also been moved forward. Arun-III is scheduled to be built by 2024 while lower Arun will be completed by 2028 for commercial operation. The Arun-IV project will be handled by SJVN as well.

According to the agreement, the electricity generated from these projects can be sold to the power distribution companies and wholesale consumers of the states along with the utility areas decided by the central government on the basis of long-term contracts in India.

"PTC will try to sell any untied capacity on medium and short-term basis or in power exchanges," SJVN Arun-III Power Development Company said in a statement. Similarly, PTC reports that the MoU with SJVN Arun-III Power Development Company is a milestone and the company believes that this will enable it to supply 3,000 MW of hydropower from Nepal to India by 2030.

Earlier, the government had given the responsibility to SJVN through a Project Development Agreement (PDA) on November 25, 2014. The Prime Ministers of Nepal and India jointly launched the Arun III project by pressing the switch on May 12, 2018 in New Delhi. At present, more than 50 percent work of the tunnel and dam construction of the project is completed.

Meanwhile, the government of Nepal will get 21.9 percent of the total electricity produced by the Arun III project, i.e. 197.1 megawatts, free of charge. Construction of power transmission lines is also underway in the project. The transmission line passing through Sankhuwasabha, Bhojpur, Khotang and other districts will be connected to the 400 KV national transmission line at Dhalkebar in Mahottari.

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